<p>OK, I've been through a lot of CC threads on the savings bonds issue, and none seems to answer to the specific questions I have:</p>
<p>Is it worth it each year of the kid's college education to maximize the cashing of savings bonds for education, to garner the most possible tax-exempt income? Or does the increase in tax-exempt income that move generates on the FAFSA raise your EFC too much?</p>
<p>Here is the current FAFSA formula. Print it out and work through it with different scenarios. The formula does change a bit from one year to the next, but this will give you a good idea of what your numbers will look like.</p>
<p><a href=“http://studentaid.ed.gov/sites/default/files/2012-13-efc-forumula.pdf[/url]”>http://studentaid.ed.gov/sites/default/files/2012-13-efc-forumula.pdf</a></p>
<p>Before you cash the savings bonds for college education, you’re required to report the total value of your savings bonds as your asset.</p>
<p>After you cashed the savings bonds, you will decrease your asset; but your tax exempt interest income would increase.</p>
<p>I would say cashing the savings bonds has a minimum impact on your EFC.</p>
<p>Thanks for the replies, and thanks for the link to the formula, I’ll try that.</p>